Lower costs see Glen Electric profits rise 13% despite decline in revenues
Glen Electric Ltd is estimated to account for around half of Glen Dimplex’s overall business and figures show that the company’s revenues decreased by 6.5% from £880.7m to £823m in the 12 months to the end of March this year.
Glen Dimplex — owned by one of Ireland’s richest men, Martin Naughton — has unlimited status and is not required to file public accounts.
Glen Electric is the largest manufacturer of domestic heating appliances in the world, with in excess of 400 products and employing more than 5,000 people.
The company is based in Newry, Co Down and has 23 subsidiaries engaged mainly in manufacturing and distribution, with eight in England; two in Northern Ireland and units in Germany, Austria, Holland, Canada, France, Norway, the US, New Zealand and Japan.
The company achieved a £7.5m increase in pre-tax profits due to lower costs, with its overall costs decreasing by 8% from £813.8m to £750.3m.
The figures show the company’s cost of sales decreased by 9.5% from £594.4m to £539.5m and its other operating expenses reduced by 4% from £219.3m to £210.7m.
The company’s operating profits increased by 9% from £66.8m to £72.7m.
Interest payments of £6.4m reduced the company’s profits to £66.3m. A tax bill of £21.5m resulted in after-tax profits of £44.7m — an increase of 13% on 2008.
The figures show that non-cash items, depreciation and amortisation costs last year amounted to £31.3m.
The company had net assets of £262.3m, including £163.2m in cash, with accumulated profits of £222.5m standing at the end of last year.
The company last year paid dividends totalling £3.8m, following a dividend pay-out of £11.5m in 2008.
The directors stated that the company “will continue to develop the principal activities of the group and to identify areas with further growth potential and acquisitions, which would increase shareholder value”.
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